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It can be exciting to think about having a home built exactly the way you want it. But there are also some pitfalls to watch out for when building a home that you may not have experienced buying a pre-existing house.
If you’re considering building your next home, make sure to review these "4 common mistakes to avoid" from realtor.com.
Be wary of a tight timeline. Keep in mind that construction is at the mercy of Mother Nature, and a rainy season can cause building delays. You could save yourself some stress if you expect the project to take longer than projected, rather than automatically expecting smooth sailing.
An incomplete contract
When having a home built, it’s prudent to have a real estate agent or real estate attorney (an industry professional) review your contract. You want to be sure it provides comprehensive information about the entire scope of your project, including what steps will be taken if something goes wrong.
If this is your dream-home, the one you plan to retire in, make sure to keep your future self in mind when working through the design. Will you want to navigate steep or narrow stairwells, or schlep your laundry to the basement?
Neglecting to schedule site visits
Schedule regular visits with your builder to review progress and discuss any concerns with contractors. That way, you'll understand how your home is put together, and you're less likely to encounter surprises after you move in.
One more point to keep in mind: Your builder typically has a base price point with standard amenities. Ask which options would be upgrades and what they cost, to see if you can afford them. It's okay to get multiple bids to see which builder you think you would work best with. When building a home, you can typically include upgrades (including energy savers like more efficient ductwork) in your mortgage ... which often means paying less interest than if you buy them later on your credit card. However, you should plan to meet with your mortgage lender to discuss your upgrades to make sure you’re staying within your approved loan amount. Sometimes too many upgrades raise a home’s price without raising its appraised value.
If you’re thinking about building a home, start by meeting with an experienced Bell Bank Mortgage lender you can trust to talk about how much home you can qualify for, and we can walk you through the process, from your construction loan to permanent home financing.